Legal experts are advocating for enhanced regulatory harmonization, transparency, and meticulous documentation to fortify Nigeria’s real estate sector and bolster investor confidence.
During the 2025 Legal Business Conference held in Lagos, themed “Real Estate as a Catalyst for Economic Development,” Oluwafikayomi Ogunrinde, Managing Associate at Olaniwun Ajayi LP, emphasized that the prosperity of any real estate transaction depends on rigorous legal due diligence and precision in documentation.
“Due diligence must encompass the parties involved, the security, and the property itself. There have been instances where developers acquire land and construct beyond their designated boundaries, utilizing such portions as collateral. When complications arise, lenders find that what they consider as security may not exist legally,” she elaborated. She underscored that property titles remain the foremost risk factor in real estate transactions.
“Title is the cornerstone,” she asserted, urging both investors and legal advisers to meticulously verify ownership and compliance prior to execution. Ogunrinde further called for legal reforms to simplify Nigeria’s regulatory processes, characterizing the current system as burdensome and susceptible to inconsistencies.
“A consolidated compliance dashboard that harmonizes interactions with agencies such as FIRS, LASRA, and local governments would be immensely beneficial. It is disheartening when foreign clients receive contradictory information from various authorities regarding the same property,” she noted.
The convener of the conference and founding partner at The Law Suite, Ifeoma Ben, echoed the need for enhanced legal supervision in the sector. She highlighted that inadequate documentation and fraudulent practices continue to pose significant threats to investor confidence. “Fraudulence must be eliminated at all levels. Agreements should be scrupulously documented right from the initial negotiation stage. Lawyers play an essential role in ensuring contracts are unambiguous, enforceable, and protective of investors’ interests,” she explained. Ben also discussed the recent demolitions of residential properties in Lagos, indicating that such occurrences exemplify the repercussions of insufficient due diligence.
“We must trace the origin of the title and engage specialists from the outset. Government agencies must also eliminate fraudulent operatives from their systems,” she stressed.
Michael Olufemi Alley, Principal Architect at The Building Practice Ltd., asserted that architects are crucial in rendering projects financially appealing through sustainable design.
“Green and energy-efficient buildings attract impact investors and development banks such as AfDB and IFC. They draw cheaper financing compared to domestic loans which carry high interest rates,” he commented.
Akin Opatola, Chapter President of the International Real Estate Federation (FIABCI), portrayed the real estate sector as a promising engine for Nigeria’s GDP. He praised infrastructural projects in Lagos, such as the Fourth Mainland Bridge, coastal highway, and new international airport, for invigorating economic growth and real estate activity.
